In a bid to enhance the AI computing infrastructure in the United States of America, USA, President Donald Trump has announced a $100 billion collaboration called “Stargate” between OpenAI, SoftBank, and Oracle.
This initiative is set to transform AI capabilities in the U.S. with potential funding hitting up to $500 billion over four years.
The Stargate project which is set to commence with 10 data centers already under construction in Texas, will focus on constructing data center facilities that house servers to provide the computational power needed for AI advancements.
The joint venture stands as a testament to President Trump’s commitment to accelerate the development of American-made AI technologies to compete with China’s advancement in the field.
INVESTORS KING gathered that the project will be funded initially by OpenAI, SoftBank, and Oracle but will also welcome other investors.
Recall that President Trump on Monday rolled back an executive order issued by former President Joseph R. Biden Jr.
The order had imposed regulatory standards on the government’s use of AI, including safety and ethical requirements.
However, Trump pledged to remove barriers for data center construction saying “We’re going to make it as easy as it can be.”
He also revealed plans to issue “emergency declarations” to allow Stargate to generate its own electricity, though specific details were not provided.
To overcome this, the companies agreed to allow OpenAI to partner with Oracle, enabling the construction of additional data centers and diversifying its infrastructure sources.
OpenAI CEO Sam Altman also initiated discussions last year with international stakeholders, including investors in the United Arab Emirates, Asian semiconductor manufacturers, and U.S. policymakers to secure global support for building data centers and semiconductor manufacturing facilities.
However, concerns arose among U.S. officials about the potential risks of developing critical technology abroad, particularly in the Middle East. These concerns prompted OpenAI to redirect its focus toward expanding data center infrastructure within the United States, ensuring that such developments align with national security and economic interests.
INVESTORS KING has also learnt that OpenAI has been working on plans to build large-scale data center campuses worldwide to address the increasing computational needs of its advanced AI tools, such as ChatGPT.
The company recently shared a comprehensive economic plan with the U.S. government, highlighting the necessity of establishing major data centers within the country to maintain essential AI infrastructure domestically.
